European Energy Commissioner Andris Piebalgs
participated as a keynote speaker at a conference on the Trans-Saharan Gas
Pipeline project which could supply gas from Nigeria to Europe through Niger and
Algeria. In his speech, Commissioner Piebalgs emphasized the importance of
energy cooperation through the existing Euromed framework and the forthcoming
EU-Africa Energy Partnership and underlined that the diversification of
suppliers and routes is a key part of the EU's strategy for the security of
energy supply.

“The Trans-Sahara Gas Pipeline could constitute a promising supply
source and route for the EU. In this context, the available proven gas reserves,
the feasibility of the project, its economic viability and the geopolitical
developments in the region need to be clearly assessed. Today's conference
should help provide us with some preliminary answers to those questions",
declared Mr Piebalgs.

The 4300 km long Trans-Saharan Gas Pipeline's departure terminal would be
Brass in the Niger delta and its arrival terminal could be either Beni Saf or El
Kala in Algeria. The pipeline's capacity should reach up to 30 billion cubic
meters starting by 2015.

The Conference presenting the Trans-Saharan Gas Pipeline was initiated by the
Algerian Minister of Energy and Mining, Mr Khelil, Sonatrach and the Nigerian Ministry of
Energy. Its main purpose was to present the pipeline project, discuss its
feasibility and attract potential investors.

EU access to Nigerian gas reserves is particularly crucial since European gas
consumption and gas imports will increase significantly in the future. An
increase in demand for natural gas and declining domestic production will result
in a significant growth of import dependency. Consequently, natural gas imports
may reach 85% of EU gas consumption by 2030 compared to 50% in 2000. This raises
significant concerns about the EU's long-term security of supply. This is
particularly the case given the growing dependency upon gas imports originating
from a limited number of supplier nations, combined with the need for long
distance transport infrastructures.

Nigerian gas reserves are estimated at 5 trillion cubic meters – equal
to roughly 10 years of consumption of the EU - most of which are currently
dedicated to liquefied natural gas (LNG) schemes. These are being expanded
continuously due to growing transatlantic demand. Moreover, the West African Gas
Pipeline project (WAGP), signed by Togo, Benin, Ghana and Nigeria, as well as
the gas supply to Equatorial Guinea are ambitious projects supplying the larger
West Africa region. The available Nigerian gas reserves therefore need to be
carefully assessed, taking into consideration not only the current and future
LNG needs, but also the West African Gas Pipeline supply needs and local gas
demand.